The bill amends Section 7-2-5.11 of the New Mexico Statutes to provide an income tax exemption for salaries paid by the United States to individuals serving in the uniformed services. The term "armed forces" is replaced with "uniformed services," and the definition of "uniformed service" is expanded to include active and reserve components of the Army, Navy, Air Force, Space Force, Marine Corps, Coast Guard, the United States Merchant Marine, the commissioned corps of the United States Public Health Service, the commissioned corps of the National Oceanic and Atmospheric Administration, and the National Guard of a state.

Additionally, the bill requires taxpayers claiming this exemption to report the amount to the department in a specified manner and mandates that the exemption be included in the tax expenditure budget, detailing the annual aggregate cost. The provisions of this act will take effect for taxable years beginning on or after January 1, 2026.

Statutes affected:
introduced version: 7-2-5.11